(a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of B, and B, The estimate of Bo is (Round to four decimal places as needed.) The estimate of B, is (Round to four decimal places as needed.) (b) Assuming the residuals are normally distributed, test whether a linear relation exists between the rate of return of the index, x, and the rate of return for the company stock, y, at the a= 0.10 level of significance. Choose the correct answe State the null and alternative hypotheses.

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.